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A three column cash Book is a cash book which contains bank column along with cash and discount columns. A firm normally keeps the bulk of its funds at a Bank; money can be deposited and withdrawn at will if it is a current account. Probably payments into and out of the bank will be more numerous than strict cash transactions. Cash Book is in a way, a cash account with debit and credit side and Cash account is an asset account, so the rule followed is Increase in assets to be debited and Decrease in asset is to be credited. Sample of different cash book pdf.
